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Payment and Provision Consequentiality in Voluntary Contribution Mechanism: Single or Double “Knife-Edge” Evidence?

Author

Listed:
  • Jie He

    (Département d'économique, École de gestion, Université de Sherbrooke)

  • Jérôme Dupras

    (UQO)

  • Thomas G. Poder

    (Centre de Recherche du CHUS, Université de Sherbrooke)

Abstract

We conducted a field stated preferences survey to understand the joint and separate effects of payment and provision consequences on hypothetical bias associated with voluntary contribution. Based on four treatment groups and a contingent-ranking willingness to pay (WTP) question, this paper provides some support for “single” knife-edge evidence, which suggests that a respondent facing positive provision consequences will report a significantly higher preference only if the payment consequence is co-presented. For the payment consequence, its negative impact on WTP was independent on the presence of provision consequence; we therefore reject the “double” knife-edge evidence.

Suggested Citation

  • Jie He & Jérôme Dupras & Thomas G. Poder, 2018. "Payment and Provision Consequentiality in Voluntary Contribution Mechanism: Single or Double “Knife-Edge” Evidence?," Cahiers de recherche 18-02, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    • Handle: RePEc:shr:wpaper:18-02
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    Keywords

    hypothetical bias; knife-edge evidence; payment consequence; provision consequence; contingent ranking; voluntary donation; ecosystem services valuation.;
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